Strategic Merchandising Solutions In Supermarket Retailing

One of the benefits of spending time across the various segments of retailing, from specialty, mass merchandise, to service and CPG/supermarket, is the appreciation of each segment's view of solutions and technology.

Supermarket is especially interesting: the competition from Wal-Mart and hybrid operators is relentless, not only in center store but in the perimeter sections as well. Increasingly, the successful players find ways to differentiate, aided by new technology solutions embraced by other segments of retail long ago.

The prevailing view of years past in supermarket was perpetual inventory was either unattainable, not worth the effort in terms of store disciplines or a project pledged to the drawing board a few years out. With good reason, imagine the masses of merchandise rolling in and out of the stores on a daily basis – but it can surprise many from other retail verticals, where inventory control is a central prerequisite to achieving high levels of merchandise sophistication.

However, in a number of recent conferences and discussions, we see an inflection point. More and more, supermarket operators, even those participating in large wholesaler groups, are taking control of their space in the store and on the shelf. This includes actively managing their assortments and pricing strategies and fundamentally moving away from the vendor-driven approach. While the major chains are further down this road with established and successful strategies for private labeling and improved merchandising success, we're now seeing the industry moving as a whole.